U.S. retail motorcycle sales fell 7.1% to 48,918 for the quarter and are down 4.7% for the first nine months of the year.

"We continue to effectively navigate a fiercely competitive environment and an ongoing weak U.S. industry," Harley CEO Matt Levatich said in a statement. "We are pleased with the positive results and the enthusiasm we've seen for our model-year 2017 motorcycles, featuring the new Milwaukee-Eight engine. We are confident that the entire line-up will drive retail sales growth for the remainder of 2016 and position us well heading into the spring riding season next year."

Harley (HOG) said it would rack up $20 million to $25 million in fourth-quarter expenses tied to "employee separate and reorganization costs."

Harley spokesperson Maripat Blankenheim confirmed in an email that the company plans to lay off 225 salaried workers and 70 contract employees in the fourth quarter.

The Milwaukee Journal Sentinel, part of the USA TODAY Network, reported in August that layoffs would include cuts at plants in Pennsylvania and Wisconsin.

The company's stock rose almost 9% in late-afternoon trading to $54.09.